Intelligent enterprise
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Intelligent Enterprise is a management approach involving technology and aimed at improving business performance. The concept, as articulated in James Brian Quinn's seminal book Intelligent Enterprise posits that intellect is the core resource in producing and delivering services. This approach is referred to as Knowledge Management.[citation needed]
Paradigm[edit]
In the Intelligent Enterprise paradigm, managers are expected to provide a rewarding work environment through lower friction and an energetic conduct.[1] It also suggests outsourcing the more auxiliary functions to vendors, so that firms may become more focused on their core components.[2] Ming Yingzhao and Feng Dexiong stated that "the degree to which the Intelligent Enterprise can be successful depends on the competencies of the people and its operational capabilities."[3] such as, structure, policies and systems.
Real life examples[edit]
Honda[edit]
During its early years, Honda competed with companies such as Toyota and other Japanese producers - however, outsourcing many of its components to achieve economies of scale and focusing more on the development and production of its manufacturing operations helped it gain a competitive advantage.[4]
Apple[edit]
Apple when introduced to the highly competitive computer environment retailed for about $2000 but cost less than $500, as over 70% of its components were outsourced.[5] Instead, Apple focused on the design, logistics, software and product assembly.[6]
Stated Advantages[edit]
Gupta claims that more available information will lead to better decision-making and thus, be beneficial in a macroeconomic sense.[6]Gupta classifies the advantages of Intelligent Enterprises into 3 different levels: Operations, Tactical and Strategies:[6]
- Operations: In an operative view, intelligent enterprises set the platform in which automates processes and allows the access to all data information which may have been physically and logically dispersed at one time.
- Tactical: An Intelligent Enterprise may have better and faster decision-making as information is easily accessed.
- Strategies: The reduction of operating times promotes the reduction of operating costs thus leading to better customer services. In addition, advanced business decision-making follows from better tactical strategies.
Limitations[edit]
However, as with all business theories, there are limitations. Palmer, a PhD student, has found that corporations and businesses are blind to the fact that in order for intelligent enterprises to work, both the inner and outer of businesses need to work hand in hand. The inner of a business includes the following: strategic planning, resource efficiency, opportunities, processes and interaction with the environment.[7]
It is important to note that humans are the intelligence behind the technological systems and to affirm the validity is still very limited. Human beings have many qualities that are different to that of a technology apparatus (psychological and sociological), which needs to be taken into account. Therefore, limiting this theory to that of a technological approach should not be the sole focus of a corporation.[7]
References[edit]
- ^ Quinn, James Brian (1992). Intelligent Enterprise: A knowledge and service based paradigm. United States of America: The Free Press.
- ^ Wiig, Karl M. (2007). The Intelligent Enterprise and Knowledge Management. Texas: Knowledge Research Institute, Inc. S2CID 15643503.
- ^ Yingzhao, Ming; Dexiong, Feng. Research on the Intelligent Enterprise Based on Intelligent Behaviour. Proceedings of the 7th International Conference on Innovation & Management. Wuhan, P.R.China: School of Management, Wuhan University of Technology.
- ^ Quinn, James Brian (1999). "Strategic Outsourcing: Leveraging Knowledge Capabilities". MIT Sloan Management Review. Retrieved 21 October 2014.
- ^ Choo, Chun Wei (1995). Information Management for the Intelligent Organization. Medford, New Jersey: Information Today/Learned Information.
- ^ a b c Gupta, Jatinder N. D.; Sharma, Sushil Kumar (2004). Intelligent Enterprises of the 21st Century. London: Idea Group Publishing.
- ^ a b Palmer, Kent D. (2007). Exploring Intelligent Enterprise System Limitations. CA: INCOSE.